NewsHow Rating Changes Affect Red Zone Properties

The Government's proposed settlement for houses in the red zone announced on 23 June 2011 is based on rateable value for those properties. Many property owners have voiced their concern that the rateable value for their property (last set in 2007) does not reflect the current value of their property, due to market movement generally, or improvements made to their property since the last rateable value was set.

Orders in Council have been made to amend the rating valuation legislation for Christchurch City and Selwyn District allowing a resetting of valuations in certain circumstances. The recent changes delay the Council's obligation to carry out the next revaluation for rates to 1 December 2013; change the circumstances for amending existing valuations; and exempt the Councils from undertaking new valuations on the request of owners.

The City Council is able to amend the rateable valuation of a property by its own motion or on the application of the owner at any time in specified circumstances (s14 Ratings Valuation Act 1998 and cl 6 Canterbury Earthquake (Rating Valuations Act - Christchurch City Council) Order 2011). This ability to amend the valuation is not new. The specified circumstances have been changed so that work affecting the value can only be considered if it increases the value of the rating unit. Valuation alterations can also be made for buildings that have been or have been ordered to be demolished.

The rateable value of properties is obviously of crucial importance to those in the Red Zone, as this is the basis for the compensation package just announced by the Government.

If you require any assistance regarding the rating value of your property please contact Mike Kerr.